The paperwork involved with the insurance policy for your car can be very confusing, and you’d be surprised how many people have no idea what it really says. Familiarizing yourself with the details of your policy is a must when it comes to being prepared for an accident – as well as any number of other things that can go wrong.
There are many common misconceptions about insuring your car that many customers believe to this day – here’s how to sort through them.
Things That DON’T Effect Your Car Insurance Premiums
- The color of your car.
- Whether or not you’re a smoker.
- Your local weather. Some people believe your address is used to determine this. In reality, sunny regions do not pay less than any other, and your address is only used to find the crime rates in your area, if it is used at all.
- A speeding ticket. Usually you don’t have to fear your rates going up until you get two or more in a short period.
- The age of your car. Rates are calculated based on the amount of claims the insurance company receives for that car and the average cost to repair it, which doesn’t necessarily have to do with whether it is new or old.
Things That DO Effect Your Car Insurance Premiums
- Your credit score. Insurance companies will often look at this to see how you manage your finances.
- Lapses in coverage. You may save money by not paying for insurance if you’re not driving, but it can affect the amount you pay when you get insured again.
- New vehicles. Some customers think the car insurance company will automatically know if you get another car – but in reality, you usually have a certain amount of days in which to notify them.
The Truth About Theft and Damage
- Theft can happen even if you drive an older car. Many thieves look for reliable older models as much, if not more, than newer cars – plus, they can be easier to obtain.
- Theft and damage is not automatically covered by the insurance company. You have to have some form of comprehensive insurance package.
- Personal property that is stolen or damaged while in your car is never covered by auto insurance.
If you lend your car to someone and they get into an accident, don’t fool yourself into thinking you won’t have to pay for damages. Your insurance is attached to the car, not the driver.
Rental car coverage can be great if your car is in the shop, but you can’t use it to rent a car for a vacation or any reason besides your own vehicle being stolen or incapacitated.
Personal auto insurance cannot be used for business. If your insurance company finds that you got into an accident while doing work for your business, your claims could be denied.
Buying car insurance can seem like a chore because of how complicated it can be. But many drivers find that when they educate themselves on their policy, it can mean good news, once they understand what their coverage entails. It always helps to know that when you get out on the road, you’ve got protection from the unexpected.
Deanna Ford writes for several insurance blogs. Find cheap Montana car insurance quotes or compare Montana auto insurance rates online.